Question 1

Can I use my personal income to qualify for either loan?

Accepted Answer

Neither loan requires personal income verification. DSCR looks at rental income only, hard money looks at property value only.

Question 2

Which loan is cheaper overall?

Accepted Answer

DSCR costs less in rate and fees. Hard money costs more but you pay it for a shorter time, so total interest depends on your timeline.

Question 3

Do I need perfect credit for these loans?

Accepted Answer

DSCR typically wants 640+ credit. Hard money cares less about credit, some lenders approve with scores in the 500s.

Question 4

Can I get 80% financing with either loan?

Accepted Answer

DSCR maxes at 80% loan-to-value with strong credit and cash flow. Hard money rarely exceeds 80% and usually requires rehab reserves.

Question 5

Which loan closes faster in La Puente?

Accepted Answer

Hard money closes in 7-14 days. DSCR takes 30-45 days because it requires appraisals and full underwriting.

Question 6

Should I refinance my hard money loan into DSCR?

Accepted Answer

Yes, if you're keeping the property as a rental. You'll drop your rate by 3-7% and extend to a 30-year term.

DSCR vs Hard Money Loans in La Puente: Which Investor Loan Fits Your Deal?